New Jersey Mining Company Reports Initial Resource Estimate for the Golden Chest Mine

KELLOGG, Idaho, March 5, 2012 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce its first NI-43-101 compliant resource estimate for the Golden Chest gold mine located in Murray, Idaho. The initial resource estimate is an essential component of the project's development and is a key milestone for New Jersey Mining Company. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (MOZ-TSX) and NJMC is the operator. 

"The 2011 drilling program was quite successful. The new global resource is 40% greater than what we had previously considered it to be. In addition the quality of the resource estimate has greatly improved because of more closely-spaced intercepts. It is likely that the resource will be increased substantially by the planned 2012 drilling program based on our increased geologic knowledge of the Golden Chest deposit," stated Fred W. Brackebusch, CEO of NJMC.

Table 1 – Golden Chest Initial Gold Resource Estimate

The "Global Resource" estimate is that portion of the geologic block model above a cutoff grade of 0.40 g/t gold. The "In Open Pit" estimate is a conceptual open pit plan that is the result of an optimization routine used to determine what portion of the deposit is amenable to open pit mining at a gold price of US$1,200 with a given a set of economic, geologic and metallurgical parameters as described below. An isometric view of the open pit with an overlay of the gold grades of the block model will be posted on our website: www.newjerseymining.com.

1.         The 0.4 g/t gold open pit cut-off grade underlying the resource estimate is based on a number of parameters and assumptions including a gold price of US$1,200 per troy ounce, 92% metallurgical gold recovery, mining costs of US$2.00/tonne, process costs of US$9.50/tonne, general and administrative costs of US$2.00/tonne and environmental reclamation costs of US$0.20 per tonne treated.

2.         The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define the Inferred mineral resources as Indicated or Measured mineral resources. It is uncertain if further exploration will result in upgrading them to Indicated or Measured mineral resource categories.

3.         The mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The effective date of this mineral Resource Estimate is March 2012.

Audited Mineral Resource parameters:

1. Estimations are based on sample composites of 2 meters. Grade capping was applied to a single sample grading 864 g/t Au. Based on detailed statistical analysis combined with information from drill hole logs, no further grade capping was deemed necessary.
2. A 0.40 g/t Au cut-off grade was applied for the 3-D deposit modeling.
3. A specific gravity of 2.66 tonnes per cubic meter was used.
4. Resources were modeled using 3-D interactive modeling backed by sectional interpretation.
5. The database for the Golden Chest deposit comprised a total of 14,550 meters (113 DDH and 13 RC) of drilling.
6. The mineralized zones at the Golden Chest Mine extend approximately 920 meters along strike. The resource has been constrained by a conceptual open pit shell that includes resources to a maximum depth of 250 meters.
7. The grade estimation was done using ordinary kriging interpolation using 2.0 meter composites. All estimations are based on a percent block model with unitary dimensions of 5 meters east, 5 meters north, and 5 meters in elevation.
8. Indicated mineral resources include all mineralized blocks within a multiple of 0.5 to 1.0 of the variogram range and are estimated using a minimum of 3 drill holes.
9. Inferred mineral resources include all mineralized blocks within 1.0 to 3.0 times the variogram range and are estimated with a minimum of 2 drill holes including the isolated areas and also the blocks that were estimated in passes one and two that did not meet the criteria to be classified as Indicated.

This resource has been estimated in compliance with Canadian National Instrument 43-101 standards. The resource estimate was completed by Micon International Limited (Micon) using both ordinary kriging and inverse distance cubed methods, which gave similar results. The reported figures are taken from the ordinary kriging modeling. The Micon staff responsible for this Resource Estimate are Messrs Charley Murahwi, M.Sc., P. Geo., FAusIMM and Alan J. San Martin, MAusIMM(CP). Both are Qualified Persons as defined in NI 43-101, and are independent of Marathon Gold Corporation and New Jersey Mining Company. Micon acknowledges that it has read this news release and there are no errors contained herein.

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as "measured," "indicated," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q.

The Golden Chest Mine

The Golden Chest Mine is located two miles east of Murray, Idaho within the gold belt of the Coeur d'Alene Mining District. The mine has over 3,900 meters of underground workings and has the permits necessary to drill and operate on the deposit. The property includes 24 patented mining claims and 70 unpatented mining claims covering 515 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the joint venture to work easily on the mine property.

About New Jersey Mining Company:

New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal resources in the Coeur d'Alene Mining District of northern Idaho. New Jersey Mining Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the New Jersey Mine which includes a fully-permitted flotation mill and a concentrate leach plant.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Factors that could cause actual results to differ from those anticipated are discussed in New Jersey Mining Company's periodic filings with the Securities and Exchange Commission.